PayPal is launching several features that will allow users in groups to pool money with friends and family to collectively pay for trips, vacations, gifts, and more. The company is launching the feature in the US, Germany, UK, Italy and Spain ahead of the holiday season.
“Reboot” might be a better verb here. PayPal actually introduced a pool feature some time ago, fancifully called “money pools.” It debuted in 2017, perhaps as a reaction to people coming up with the idea earlier and getting a lot of attention to it. However, PayPal ended this service worldwide in November 2021.
At the time, the company didn't fully explain why it was shutting down Money Pools, but by 2021 there will be a number of competing alternatives that don't require all posters to be PayPal users, and that's Money Pools. It is noteworthy that this was one of the gate factors for This was also the height of the Covid-19 pandemic, and PayPal was focused on developing products for charitable donations, competing with companies like GoFundMe. (We are currently contacting PayPal for more information on why they decided to reopen the pool. We will update as soon as we know more.)
The new version of the service will allow users to set up pools from the PayPal app or website. You can get started by tapping on the new 'Pool Money' option in the app menu. This option is also available in the More Options menu on the Send/Request tab.
Importantly, friends and family can add funds directly to your pool through that link, even if they don't have a PayPal account.
You can add a pool title, description, target date, and optional target amount. These pools have shareable links that you can send to your friends and family via text, email, WhatsApp, or Messenger.
Steps to create a new pool in the Paypal app Image credit: PayPal
Pool creators can track contributions to the pool from various invitees. You can also transfer funds to your account at any time to spend on travel, gifts, and experiences.
“Everyday life is all about connection, whether it's participating in a group gift or planning a trip with friends and family. PayPal understands this and aims to make those moments easier. We have introduced a simple and cost-free solution for raising and managing funds for group purchases, allowing us to help our customers navigate both the social and financial aspects of their lives. We are pleased,” he said in a statement.
Apps like PayPal, Venmo, and Splitwise have ways to split costs between groups. However, this feature is more useful if you have already paid for it. The new pools feature is useful if you want to receive money from people upfront before you spend it on something.
Additional reporting by Ingrid Lunden